Friday, 15 May 2009

Government action needed as 1,000 homes repossessed every week

Figures out today from the Council of Mortgage Lenders suggest that the number of homes repossessed in the UK rose to 12,800 in the first three months of 2009. This equates to 1,000 homes being repossessed every week, and is a 50% rise on 2008.

In October 2008, when the 'nationalised' Northern Rock was repossessing homes at three times the industry average, LEAP called for a social conversion programme to convert homes at risk from repossession into socially owned council homes, with owners given secure tenancy. You can watch the video here.

Commenting on today's figures, John McDonnell MP, LEAP Chair, said:

"It's difficult to comprehend why repossessions are still on this scale when supposedly many banks are in public ownership and Government measures are in place to prevent people losing their homes.

"The Government measures are clearly not working effectively. We now need an immediate programme to convert homes threatened with repossession into social ownership with people staying in their homes."

Andrew Fisher, LEAP Co-ordinator, said:

"The rising toll of repossessions is a direct result of Government inaction. If repossessions continue to rise at this rate then 75,000 homes will be repossessed this year.

"Public ownership of the banks should bring benefits for the public - and since it was public money that bailed out the banks, it seems only fair that the Government ensures people stay in their homes."